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Abstract:

Embodiments of the present invention provide a private label promotion
card as a bank product, being issued and managed by the bank and using an
open payment network for purchase authorization and payments. A bank
computer processes activation information for a promotion card and
receives funds into an account at the bank on behalf of a retailer for
payment for the promotion card, perhaps at a discount to a customer value
of the promotion card. The bank computer authorizes purchase requests to
use one or more activated promotion cards as payment for a consumer
purchase from the retailer via an open payment network and transfers
funds to the open payment network to satisfy the authorized consumer
purchase. Upon expiration, the bank computer sweeps the account of the
remaining value for expired promotion cards to thereby establish a credit
for the bank.

Claims:

1. A computer-implemented method to manage a plurality of promotion
cards, the method comprising: issuing, by a computer associated with a
bank to define a bank computer, a plurality of cards configured to be
used with one or more of a plurality of retailers in association with one
or more promotions to define a plurality of promotion cards, one or more
of the plurality of retailers having an obligation to pay a predetermined
amount to the bank for the plurality of promotion cards issued by the
bank, each of the plurality of promotion cards having redemption value;
determining, by the bank computer, a receipt of an indication from one or
more of a plurality of retail computers that one or more retail customers
are eligible for the one or more promotions with one or more of the
plurality of retailers, the bank having an obligation to fund from the
bank's funds one or more authorized transactions associated with one or
more of the plurality of promotion cards equal to or less than the
redemption value; authorizing, by the bank computer, one or more
transaction payment requests associated with one or more of the plurality
of promotion cards issued by the bank computer to define one or more
authorized transactions, the authorizing being responsive to a value of
the one or more transaction payment requests being equal to or less than
the redemption value of the one or more of the plurality of promotion
cards; and transferring, by the bank computer, funds in an amount of the
value of the one or more transaction payments request from the bank
computer to the one or more of the plurality of retail computers so that
the bank meets the obligation to fund the one or more authorized
transactions.

2. A computer-implemented method as defined claim 2, wherein the one or
more promotions include one or more of: a coupon for one or more
purchases with the one of the plurality of retailers so that the one or
more of the plurality of promotion cards are coupon-type cards, and a
rebate for one or more purchases with the one of the plurality of
retailers so that the one or more of the plurality of promotion cards are
rebate-type cards.

3. A computer-implemented method as defined in claim 1, wherein one or
more of the authorizing and the transferring steps are made via an open
payment network.

4. A computer-implemented method as defined in claim 1, wherein the
method further comprises: determining, by the bank computer, receipt of
funds in a first amount from the one or more of the plurality of retail
computers, the first amount being a value of the predetermined amount for
the one or more of the plurality of promotion cards associated with the
one or more authorized transactions; and wherein the funds received in
the amount of the remaining redemption value is a second amount received
from the one or more of the plurality of retail computers.

5. A computer-implemented method as defined in claim 4, wherein the
transferring the funds in the amount of the value of the one or more
transaction payment request from the bank computer occurs prior to the
receipt of funds in the first amount from the one or more of the
plurality of retail computer.

6. A computer-implemented method as defined in claim 5, wherein the
predetermined amount is a predetermined discount amount that is less than
the redemption value of the plurality of cards.

7. A computer-implemented method as defined in claim 1, wherein the funds
transferred by the bank computer in the amount of the one or more
transaction payment request is greater than the predetermined amount of
funds received for the one or more of the plurality of promotion cards.

8. A computer-implemented method as defined in claim 1, wherein the
remaining redemption value is zero.

9. Non-transitory computer-readable medium having one or more computer
programs stored therein operable by one or more computers associated with
a bank to define one or more bank computers, the one or more computer
programs comprising a set of instructions that, when executed by the one
or more bank computers, cause the one or more bank computers to perform
the operations of: issuing a plurality of cards configured to be used
with one or more of a plurality of retailers in association with one or
more promotions to define a plurality of promotion cards, one or more of
the plurality of retailers having an obligation to pay a predetermined
amount to a bank for the plurality of promotion cards issued by the bank,
each of the plurality of promotion cards having a redemption value;
determining a receipt of an indication from one or more of a plurality of
retail computers that one or more retail customers are eligible for the
one or more promotions with one or more of the plurality of retailers,
the bank having an obligation to fund from the bank's funds one or more
authorized transactions associated with one or more of the plurality of
promotion cards equal to or less than the redemption value; and
authorizing one or more transaction payment requests associated with one
or more of the plurality of promotion cards issued by one or more bank
computers to define one or more authorized transactions, the authorizing
being responsive to a value of the one or more transaction payment
requests being equal to or less than the redemption value of the one or
more of the plurality of promotion cards.

10. Non-transitory computer readable medium as defined in claim 9,
wherein the operations further comprises transferring funds in an amount
of the value of the one or more transaction payments request from the
bank computer to the one or more of the plurality of retail computers so
that the bank meets the obligation to fund the one or more authorized
transactions and determining receipt of funds from the one or more of the
plurality of retail computers, the funds being in an amount of the
redemption value of the one or more of the plurality of promotion cards
upon expiration to define a remaining redemption value.

11. Non-transitory computer readable medium as defined in claim 10,
wherein the one or more computer programs further comprises instructions
that, when executed by the one or more bank computers, cause the one or
more bank computers to perform the operations of: determining receipt of
funds in a first amount from the one or more of the plurality of retail
computers, the first amount being a value of the predetermined amount for
the one or more of the plurality of promotion cards associated with the
one or more authorized transactions ; and wherein the funds received in
the amount of the remaining redemption value is a second amount received
from the one or more of the plurality of retail computers.

12. Non-transitory computer readable medium as defined in claim 11,
wherein the transferring the funds in the amount of the value of the one
or more transaction payment request from the bank computer occurs prior
to the receipt of funds in the first amount from the one or more of the
plurality of retail computer.

13. Non-transitory computer-readable medium having one or more computer
programs stored therein operable by one or more computers associated with
a bank to define one or more bank computers, the one or more computer
programs comprising a set of instructions that, when executed by the one
or more bank computers, cause the one or more bank computers to perform
the operations of: issuing a plurality of cards configured to be used
with one or more of a plurality of retailers in association with one or
more promotions to define a plurality of promotion cards, the issuing
being responsive to a receipt of a predetermined amount for the plurality
of promotion cards, each of the plurality of promotion cards having a
redemption value; determining a receipt of an indication from one or more
of a plurality of retail computers that one or more retail customers are
eligible for the one or more promotions with one or more of the plurality
of retailers, a bank having an obligation to authorize authorized
transactions equal to and less than the redemption value; and authorizing
one or more transaction payment requests associated with one or more of
the plurality of promotion cards issued by one or more bank computers to
define one or more authorized transactions, the authorizing being
responsive to a value of the one or more transaction payment requests
being equal to or less than the redemption value of the one or more of
the plurality of promotion cards, to thereby facilitate transfer in an
amount of the value of the one or more transaction payments request from
the bank computer to the one or more of the plurality of retail
computers.

14. Non-transitory computer readable medium as defined in claim 13,
wherein the one or more computer programs further comprises instructions
that, when executed by the one or more bank computers, cause the one or
more bank computers to perform the operations of: transferring funds
remaining of the redemption value of the one or more of the plurality of
promotion cards upon expiration to define a remaining redemption value
into one or more accounts of the bank so that the remaining redemption
value become bank funds.

15. Non-transitory computer readable medium as defined in claim 14,
wherein the one or more computer programs further comprises instructions
that, when executed by the one or more bank computers, cause the one or
more bank computers to perform the operations of: determining receipt of
funds from the one or more of the plurality of retail computers, the
funds being in an amount of the redemption value of the one or more of
the plurality of promotion cards upon expiration to define a remaining
redemption value.

16. Non-transitory computer readable medium as defined in claim 15,
wherein the predetermined amount is a predetermined discount amount that
is less than the redemption value of the plurality of cards.

[0003] The present invention relates generally to the financial service
and card product industries, and, more particularly, to systems, computer
program products, and associated computer-implemented methods of
providing rebates, in-store credit, and other promotions via a bank or
private label promotion card, as well as a bank card product.

[0004] 2. Background

[0005] One common and popular sales promotion today is the mail-in rebate.
For example, a consumer reads in the newspaper about a promotion for a
$40 manufacturer's mail-in rebate for a product that sells for $240. In
fact, the promotion can advertise a price of "$200 after rebate." In
turn, the consumer goes to a retailer, purchases the product for $240,
and then mails in the rebate with proof of purchase. The consumer later
receives a check or gift card for $40.

[0006] Long known in the art, a common sales promotion bundles in-store
credit with a purchase. For example, a consumer hears a radio commercial
offering $25 of in-store credit with any purchase of stereo equipment
greater than $150. The consumer goes to the retailer, purchases stereo
equipment for over $150 and receives with that purchase $25 of in-store
credit. Rather than provide the in-store credit for use at the same time
as the purchase of stereo equipment, the retailer typically provides the
consumer a coupon or a store gift card providing in-store credit for use
during a subsequent visit. Later the consumer returns to the retailer,
presents the coupon or store gift card providing in-store credit, and
receives $25 off a purchase.

[0007] Also, it has been known that banks offer and sell bank card
products such as debit cards, credit cards, automatic teller machine
(ATM) cards, gift or prepaid cards, and combinations thereof, e.g.,
ATM/debit card. Because of the convenience, flexibility, and value as a
tool for promotion, cards are a common tool used by retailers millions of
times a year to provide consumers with rebates, in-store credit, and
promotions. Such cards are operated as store gift cards, operating on
proprietary store gift card systems. Yet many of these cards are never
redeemed and many of the accounting procedures for managing these card
programs can be difficult, complex, or expensive. For example, retailers
or other card issuers must comply with laws that govern gift cards and
gift certificates that vary from state to state. Such laws typically
determine whether a retailer is allowed to charge service fees against
dormant accounts, what escheatment guidelines to follow, and such other
requirements or guidelines as may be set forth in particular state laws.
Such required action of the retailer or other card issuer makes the
process more complex and, in some instances, burdensome or expensive. It
is further known for banks to provide back-end financial processing, data
processing, and account tracking services to various retailers to enhance
business opportunities and relationships with retailers.

SUMMARY OF INVENTION

[0008] In view of the above, Applicant has recognized numerous problems
with current offerings of rebates, in-store credit, and other promotions
and one or more sources of these problems. For example, there are
significant costs for issuing the cards and managing the transactions
associated with retailer promotion cards. In addition, Applicant also
recognizes that varied state laws and regulations are a source of
problems with current solutions, including the management of escheatment.
Escheatment involves the reversion of property to a state in the United
States when there are no legal heirs or when personal property is
presumed abandoned. Specifically, in the case of a gift certificate,
often used as a promotional item in addition to its traditional use as a
gift substitute, the retailer who offers the gift certificate may be
required to carry on its financial balance sheet a liability in the event
of an unredeemed gift certificate (which occurs quite frequently) until
state law requires the retailer to turn over to the state the value of
the gift certificate after a term for redemption, which, in some
instances, can last for years. State law generally treats gift cards as
gift certificates. Applicant recognizes that state escheatment laws and
regulations result in, at least, two distinct problems. First, the cost
and complexity of managing the escheatment process from state to state.
Second, the long-term carrying of liabilities can have a negative effect
on the balance sheet of the business offering the promotion, especially
when it is carried on the books of the business, e.g., retailer, for a
significant amount of time.

[0009] Accordingly, embodiments of the present invention provides a
private label promotion card as a bank product to thereby offer consumers
the same experience as today in dealing with a business, e.g., a product
that can only be used at a specific retailer, and yet providing
significant value to the offering businesses. Embodiments of a promotion
card as defined herein, for example, include a rebate card, in-store
credit card, and coupon-type card. According to embodiments of the
present invention, it has been recognized that a private label promotion
card can be offered, for example, by a bank, e.g., a federally-chartered
bank, whose governing laws enable a consistent implementation nationally
rather than subject to state banking laws and regulations, as a bank
product or bank service product. A bank is an establishment for the
custody, loan, exchange, or issue of money, for the extension of credit,
and for facilitating the transmission of funds; a bank is typically a
corporation operating under a charter from a government. Thus, the
embodiments of the present invention provide a private label promotion
card legally and economically distinct from others. Specifically,
embodiments of the present invention include a promotion card whose value
is managed by the bank offering the retailer promotion card. In addition,
the retailer is able to avoid the long-term carrying of liabilities and
the associated negative effects on the balance sheet, according to
embodiments of the present invention.

[0010] The bank product or bank service product, according to embodiments
of the present invention, has numerous other features and benefits,
including being issued and managed by a bank, as opposed to being issued
and managed by a retailer, mall operator, or manufacturer; use of an open
payment network, e.g., VISA, MASTERCARD, DISCOVER, and AMERICAN EXPRESS
networks, for purchase authorization and payments, rather than a
proprietary or in-house system; and being corporately financed for
promotional purposes, as opposed to being purchased by a consumer such as
for gift purposes. Furthermore, one accounting feature that can be
beneficial between the bank product according to embodiments of the
present invention and others is that money and liability are transferred
from the retailer to the bank in embodiments of the present invention, as
compared to other known systems whereby money and liability stay with the
retailer, for example, until usage and escheatment.

[0011] With the transfer of liability, embodiments of the present
invention allow the retailer to purchase the promotion card at a discount
to the face value. For example, funds being received from a retailer into
a bank account associated with the one or more promotion cards as payment
include an amount of funds less than the amount of funds associated with
the promotion value, face value, rebate value, or other value to the
consumer of the one or more cards by a consumer to thereby define a
discount. That is, the bank can sell a promotion card with a face value
of $50 to the retailer for some amount less than $50, according to
embodiments of the present invention.

[0012] Moreover, embodiments of the present invention provide financing
options to thereby enable the retailer to delay funding the bank until
the consumer spends the money available on the retailer promotion card.
According to embodiments of the present invention, this system can employ
a bank-extended line of credit or a letter of credit from a third-party
lender, whether arranged by the retailer or by the bank offering the
promotion card.

[0013] Embodiments of the present invention, for example, include a system
using the existing open payment network (including, for example, VISA or
MASTERCARD networks), as understood by those skilled in the art, and
existing point-of-sale (POS) infrastructure, as understood by those
skilled in the art, to issue bank-managed, store-specific promotion
cards. This embodiment of a system, for example, provides consumers with
gift-card functionality comparable to a retailer-managed product of
today. The bank manages the product and services of the consumers,
however, rather than the retailer, according to the embodiments of the
present invention.

[0014] Embodiments of the present invention also include software, or
program product stored on a tangible computer memory media as a set of
instructions, operable on a computer to cause the instructions to be
executed by the computer, and used to manage a purchase transaction. A
consumer, for example, presents the card at the POS. Then a clerk at the
retailer or the consumer swipes the card, making an authorization request
of an open payment network. The network routes the request to the bank
providing the promotion card and services. The bank then processes the
request and provides the authorization response via the open payment
network to the acquiring processor. As understood by those skilled in the
art, Automated Clearing House (ACH) is the name of an electronic network
for financial transactions in the United States, regulated by the Federal
Reserve. Embodiments also can use standard ACH file payments or wire
transfers to settle accounts with the retailer and the open payment
network.

[0015] Embodiments of the present invention include a computer-implemented
method of funding a promotion card. The computer-implemented method, for
example, includes receiving one or more promotion cards from a
federally-chartered bank into inventory of a retailer. According to the
embodiments of the present invention, the promotion cards are bank
products subject to federal banking laws and regulations. The
computer-implemented method continues with the activation of each of the
one or more promotion cards by the retailer prior to delivery to a
consumer. Next, funds are received from the retailer into an account at
the bank associated with the one or more promotion cards as payment for
the one or more activated promotion cards via an ACH file or wire
transfer. Later, when a consumer attempts to make a purchase from the
retailer using one or more activated promotion cards as payment,
authorization is requested of the bank via an open payment network. The
retailer is transferred funds from the open payment network in response
to the consumer purchase. The open payment network collects funds from
the account at the bank associated with the promotion cards to satisfy
the consumer purchase using the promotion card as payment. An additional
embodiment of a method, for example, can include the retailer mailing the
promotion card to consumers in a way related to how rebate fulfillment is
managed today as understood by those skilled in the art.

[0016] In addition, embodiments of the present invention provide, for
example, a system for providing a promotion card such as to a retailer
from a bank. The system can include a first computer associated with a
retailer defining a retailer computer. The retailer computer is
positioned to manage inventory of one or more promotion cards received
from a bank and to activate the one or more promotion cards through an
electronic network associated with the retailer, as understood by those
skilled in the art. A second computer associated with the bank defines a
bank computer which is positioned to manage an account associated with
the one or more promotion cards. The system can also include a POS
terminal having a processor defining an acquiring processor, and the POS
terminal being associated with the retailer. An open payment network can
be in communication with the retailer computer and the bank computer and
positioned to receive authorization requests for a consumer purchase
using one or more promotion cards as payment. The requests, for example,
can be captured by the acquiring processor of the POS terminal associated
with the retailer to thereby route the request to the bank computer
through the open payment network. The open payment network, as understood
by those skilled in the art, also can receive an authorization response
from the bank computer, transfer funds to the retailer from the open
payment network in response to an authorized consumer purchase using the
promotion card as payment, and collect funds from the account at the bank
associated with the one or more promotion cards to satisfy the authorized
consumer purchase using the promotion card as payment. The system can
further include a computer program product associated with the bank
computer, stored on a tangible computer memory media, operable on a
computer, and used to manage promotion card transactions. The computer
program product has a set of instructions that, when executed by the
computer, cause the computer to perform the operations of: processing
activation information of one or more promotion cards from the retailer
computer, authorizing purchase requests to use of one or more activated
promotion cards as payment for a consumer purchase from the retailer via
an open payment network, transferring funds to the open payment network
from the account at the bank associated with the one or more promotion
cards to satisfy the authorized consumer purchase using the promotion
card as payment, and receiving funds into an account at the bank
associated with the promotion cards on behalf of the retailer for one or
more of the following: payment for the one or more activated promotion
cards, payment for consumer purchases using one or more promotion cards,
and payment for the value remaining on the one or more promotion cards
upon expiration. The instructions can also include debiting from the
account at the bank associated with the one or more promotion cards of
the remaining value for the one or more expired promotion cards to
thereby establish a credit for the bank. That is, the instructions can
include sweeping the account of the funds associated with the expired
promotion cards.

[0017] In addition, embodiments of the present invention include systems,
program products, and associated computer-implemented methods of
providing rebates, in-store credit, and other promotions via a bank card
as will be understood by those skilled in the art, providing consumers
convenience and retailers a private label promotion card legally and
economically distinct from existing solutions, including improved funding
options.

BRIEF DESCRIPTION OF DRAWINGS

[0018] So that the manner in which the features and benefits of the
invention, as well as others which will become apparent, may be
understood in more detail, a more particular description of the invention
briefly summarized above may be had by reference to the embodiments
thereof which are illustrated in the appended drawings, which form a part
of this specification. It is also to be noted, however, that the drawings
illustrate only various embodiments of the invention and are therefore
not to be considered limiting of the invention's scope as it may include
other effective embodiments as well.

[0019]FIG. 1 is a schematic flow diagram of a computer-implemented method
of funding a promotion card according to an embodiment of the present
invention;

[0020]FIG. 2 is a schematic flow diagram of a computer-implemented method
of funding a promotion card according to another embodiment of the
present invention;

[0021]FIG. 3 is a schematic flow diagram of a computer-implemented method
of funding a promotion card according to yet another embodiment of the
present invention;

[0022]FIG. 4 is a schematic block diagram of a system to provide
promotion cards according to an embodiment of the present invention;

[0023]FIG. 5 is a schematic block diagram of a system to provide
promotion cards according to an embodiment of the present invention;

[0024] FIGS. 6A, 6B, and 6C are respective front, rear, and front
elevational views of promotion card according to an embodiments of the
present invention;

[0025]FIG. 7 is a partial schematic block diagram of computer product
according to an embodiment of the present invention;

[0026] FIG. 8 is a schematic block diagram of a system to provide
promotion cards according to an embodiment of the present invention; and

[0027]FIG. 9 is a schematic block diagram of a system to provide
promotion cards according to an embodiment of the present invention.

DETAILED DESCRIPTION

[0028] The present invention will now be described more fully hereinafter
with reference to the accompanying drawings, which illustrate embodiments
of the invention. This invention may, however, be embodied in many
different forms and should not be construed as limited to the illustrated
embodiments set forth herein; rather, these embodiments are provided so
that this disclosure will be thorough and complete, and will fully convey
the scope of the invention to those skilled in the art. Like numbers
refer to like elements throughout.

[0029] Embodiments of the present invention, for example, provide for
various ways to fund a promotion card. Embodiments of a promotion card as
defined herein, for example, include a gift card, a rebate card, an
in-store credit card, and a coupon-type card. The structures of various
types of specific prepaid cards, e.g., magnetic stripe, type of material,
are well known to those skilled in the art and can be used with
embodiments of the present invention. For example, as illustrated in
FIGS. 1, 4, and 8, embodiments of the present invention provide for a
retailer 64 to exchange funds for promotion cards 78 to a bank 72. The
bank 72 can offer a discount to the retailer 64 such that the amount of
funds paid by the retailer is less than the amount of funds associated
with the consumer value, or face value, of the one or more promotion
cards 78 (block 26). In addition, the bank manages the processing of the
promotion card (block 28), absorbs the liability that all of the
promotion cards will be redeemed, and absorbs the risk associated with
any value of promotion cards upon its expiration (block 34), according to
embodiments of the present invention. For the retailer promotion cards,
the usage of the card can either be limited to usage at that specific
retailer by restrictions managed by the bank authorization system or can
be made available at any retailer accessible through the complete open
payment network.

[0030] In another example, as illustrated in FIGS. 3, 5, and 8,
embodiments of the present invention provide for a retailer 64 to receive
promotion cards 78 from a bank 72. The retailer 64 pays no money upfront
and pays the bank 72 only in response to a purchase by a consumer 62
using a promotion card (block 37) or upon expiration of one or more
promotion cards (block 39). In addition, a third-party lender 74 can
provide a letter of credit to the bank 72 on behalf of the retailer 64
(block 21) and the retailer can pay the bank in response to a purchase by
a consumer 62 using a promotion card 78 (block 37) or upon expiration of
one or more promotion cards (block 39), should the funds not yet have
been paid by the retailer.

[0031]FIG. 1 illustrates a computer-implemented method of funding a
promotion card according to an embodiment of the present invention. The
computer-implemented method, for example, can begin with receiving one or
more promotion cards from a bank, e.g., a federally-chartered bank, a
state bank, or another type of bank entity, into inventory of a retailer
(block 22). According to the embodiments of the present invention, for
example, the promotion cards advantageously can be bank products subject
to federal banking laws and regulations, as will be understood by those
skilled in the art, so that a federally-chartered bank can offer features
not available to other types of banking entities. For example, a bank
organized under a federal charter is regulated by federal banking laws
that can and do preempt state laws, including, for example, state
escheatment laws, allowing a consistent implementation of a promotion
card nationally rather than patchwork solutions with different features
for the promotion card depending on each state. The computer-implemented
method continues with the activation of each of the one or more promotion
cards by the retailer prior to delivery to a consumer (block 24),
including the bank computer processing the activation information for the
promotion cards. Next, as illustrated, funds are received from the
retailer into an account at the bank associated with the one or more
promotion cards as payment for the activated one or more promotion cards
(block 26). Later, when a consumer attempts to make a purchase from the
retailer using one or more activated promotion cards as payment,
authorization is requested of the bank via an open payment network (block
28), for example, as understood by those skilled in the art. Funds can be
deducted funds from a promotion card, and a value remaining on the
promotion card for a next, future, or other transaction can be indicated.
The retailer is transferred funds through the open payment network in
response to the consumer purchase (block 30), as understood by those
skilled in the art. The open payment network is used to send or transfer
funds from the account at the bank associated with the one or more
promotion cards to satisfy the consumer purchase using one or more
promotion cards as payment (block 32). That is, the bank computer
transfers funds to and through the open payment network from the account
at the bank associated with the one or more promotion cards, e.g., an
electronic funds transfer, to satisfy the authorized consumer purchase
using the one or more activated promotion cards as payment. Upon
expiration of a promotion card, the account at the bank associated with
the one or more promotion cards is swept of the remaining value for the
one or more expired promotion cards (block 34). That is, the remaining
value is debited from the account.

[0032]FIG. 2 illustrates a computer-implemented method of funding a
promotion card according to another embodiment of the present invention.
The computer-implemented method, for example, can begin with receiving
one or more promotion cards from a federally-chartered bank into
inventory of a retailer (block 22), so that the one or more cards are
identified as financial assets of the retailer. According to the
embodiments of the present invention, the promotion cards are bank
products subject to federal banking laws and regulations. The
computer-implemented method continues with the activation of each of the
one or more promotion cards by the retailer prior to delivery to a
consumer through an electronic network associated with the retailer
(block 24), including the bank computer processing the activation
information for the promotion cards. Later, when a consumer attempts to
make a purchase from the retailer using one or more activated promotion
cards as payment, authorization is requested of the bank via an open
payment network (block 28), as understood by those skilled in the art.
Funds can be deducted funds from a promotion card, and a value remaining
on the promotion card for a next, future, or other transaction can be
indicated. The retailer is transferred funds from the open payment
network in response to the consumer purchase (block 30), as understood by
those skilled in the art. The open payment network collects funds from
the account at the bank associated with the one or more promotion cards
to satisfy the consumer purchase using one or more promotion cards as
payment (block 32). That is, the bank computer transfers funds to the
open payment network from the account at the bank associated with the one
or more promotion cards to satisfy the authorized consumer purchase using
the one or more activated promotion cards as payment. Next, as
illustrated, funds are received from the retailer into an account at the
bank associated with the one or more promotion cards as payment for
consumer purchases (block 36). Upon expiration of a promotion card, funds
are received from the retailer into an account at the bank associated
with the one or more promotion cards as payment for the value remaining
on the promotion cards upon expiration (block 38).

[0033]FIG. 3 illustrates a computer-implemented method of funding a
promotion card according to yet another embodiment of the present
invention. The computer-implemented method illustrated in FIG. 3 shares
many of the steps illustrated in FIG. 2; the computer-implemented method
in FIG. 3, however, begins with providing a letter of credit, as
understood by those skilled in the art, from a third-party lender on
behalf of a retailer to a bank, e.g., a federally-chartered, state, or
other bank (block 21). Later, funds are received on behalf of the
retailer into an account at the bank associated with the one or more
promotion cards as payment for consumer purchases (block 37). Upon
expiration of a promotion card, funds are received on behalf of the
retailer into an account at the bank associated with the one or more
promotion cards as payment for the value remaining on the one or more
promotion cards upon expiration (block 39). Note that unlike blocks 36
and 38, blocks 37 and 39, for example, allow for the funds to be received
on behalf of the retailer to be provided under a letter of credit by the
third-party lender due to, for example, account funds not being available
or non-payment by the retailer.

[0034] For example, the letter of credit, as will be understood by those
skilled in the art, is a technique or tool that guarantees the bank
issuing the cards that should the retailer default, the bank that
provides the letter of credit will provide the funds. In an embodiment,
for example, the retailer may continue to make the payments to fund the
spending. The letter of credit can be a way to allow the retailer to
defer the funding because there is a third party guaranteeing the
retailer funding. It will be understood by those skilled in the art,
however, that other types of guarantees can be used as well that emulate
or act as type of letter of credit or accomplish similar purposes to the
letter of credit.

[0035] Embodiments of the present invention advantageously allow the
retailer to purchase the promotion card at a discount to the face value.
For example, funds being received from a retailer into a bank account
associated with the one or more promotion cards as payment include an
amount of funds less than the amount of funds associated with the
promotion value, face value, rebate value, or other value to the consumer
of the one or more cards by a consumer to thereby define a discount. That
is, the bank can sell a promotion card with a face value of $50 to the
retailer for some amount less than $50, according to embodiments of the
present invention, as will be understood by those skilled in the art.

[0036] Embodiments of the present invention include both pre-denominated
cards and variable denominated cards. That is, a pre-denominated card may
have a predetermined or preselected amount of initial value, such as, $50
or $25, as understood by those skilled in the art. Variable denominated
cards may instead be loading with any initial amount, such as, e.g.,
$17.63, or an amount within a range as understood by those skilled in the
art. The retailer can offer, for example, a promotion card worth $25 of
in-store credit with a purchase of $100 of merchandise; in addition, the
retailer can also offer a promotion card worth 10% of any purchase,
according to embodiments of the present invention.

[0037] Embodiments of the present invention also provide flexibility for
the retailer to activate a promotion card through an open payment network
or a proprietary system. An open payment network are designed and managed
for interactions with third parties. As such, open payment networks
provide standards, for example, for purchase authorizations and payments.
These standards include, for example, interfaces, functionality,
networking, hardware and software. For example, an open payment networks
include, for example, VISA, MASTERCARD, DISCOVER, and AMERICAN EXPRESS
networks. Those skilled in the art will understand that open payment
networks can utilize and encompass numerous technologies, including, for
example, the Internet, the World Wide Web, various computer networks and
protocols, various wireless and satellite networks and systems, various
telephone networks and systems, and point-of-sale terminals. In contrast,
a proprietary system or closed or in-house system is managed privately; a
proprietary system typically excludes or limits third parties
interactions with the system, including, for example, exclusions or
limitations imposed by software.

[0038] A system 60 to provide promotion cards 78, according to embodiments
of the present invention, is also provided (see, e.g., FIG. 4). The
system includes a retailer 64 being positioned to receive into inventory
66 promotion cards 78 from a bank 72 (block 22) and further being
positioned to activate the promotion cards 78 prior to delivery to a
consumer 62 through an electronic network associated with the retailer
(block 24) via a proprietary system 68. According to embodiments of the
present invention, the promotion cards 78 are bank products subject to
federal banking laws and regulations and are redeemable only at the
retailer 64. The system 60 also includes a bank computer 80 at the bank
72 being positioned to receive funds from the retailer into an account 73
at the bank 72 associated with the promotion cards via an ACH file or
wire transfer (block 26) and further being positioned to receive an
authorization request for the use of one or more activated promotion
cards as payment for a consumer purchase from the retailer via an open
payment network 70 (block 28). The system 60 further includes an open
payment network 70 being positioned to communicate authorization requests
for a consumer purchase using a promotion card as payment (block 28), to
transfer funds to the retailer from the open payment network in response
to an authorized consumer purchase using the promotion card as payment
(block 30), and to collect funds from the account 73 at the bank
associated with the one or more promotion cards to satisfy the authorized
consumer purchase using the promotion card as payment (block 32). That
is, the bank computer 80 transfers funds to the open payment network from
the account 73 at the bank 72 associated with the one or more promotion
cards to satisfy the authorized consumer purchase using the one or more
activated promotion cards as payment.

[0039]FIG. 5 illustrates a system 60 to provide promotion cards 78
according to embodiments of the present invention. The system includes a
retailer 64 being positioned to receive into inventory 66 promotion cards
78 from a bank 72 (block 22) and further being positioned to activate the
promotion cards 78 prior to delivery to a consumer 62 through an
electronic network associated with the retailer (block 24) via an open
payment network 70. According to embodiments of the present invention,
the promotion cards 78 are bank products subject to federal banking laws
and regulations and are redeemable only at the retailer 64. The system 60
also includes a bank 72 being positioned to receive funds on behalf of
the retailer, either from the retailer or a third-party lender 74 under a
letter of credit, into an account 73 at the bank 72 for consumer
purchases (block 37) and upon expiration of a promotion card (block 39)
and further being positioned to receive an authorization request for the
use of one or more activated promotion cards as payment for a consumer
purchase from the retailer via an open payment network 70 (block 28). The
system 60 further includes an open payment network 70 being positioned to
communicate authorization requests for a consumer purchase using a
promotion card as payment (block 28), to transfer funds to the retailer
from the open payment network in response to an authorized consumer
purchase using the promotion card as payment (block 30), and to collect
funds from the account 73 at the bank associated with the one or more
promotion cards to satisfy the authorized consumer purchase using the
promotion card as payment (block 32). That is, the bank computer
transfers funds to the open payment network from the account at the bank
associated with the one or more promotion cards to satisfy the authorized
consumer purchase using the one or more activated promotion cards as
payment.

[0040] FIG. 6 illustrates an example promotion card 78 according to
embodiments of the present invention, including preferably a magnetic
strip 76 with account information and an expiration date 77. In addition,
the one or more promotion cards 78 can have indicia 79, e.g., logo,
slogans, source identifiers, thereon defining a bank brand and such brand
being different than indicia 81, e.g., logo, slogans, source identifiers,
of the retailer defining a retailer brand so that such one or more
promotion cards each further defines a fully branded card. It will also
be understood by those skilled in the art that the retailer brand may
also be left off of the card if desired as an alternative embodiment of a
promotion card.

[0041] Embodiments of the present invention provide a system 60 to provide
promotion cards 78, as illustrated in FIGS. 4, 5, and 8. The system, for
example, includes a retailer 66 having a first computer, defining a
retailer computer 100, to manage inventory 66 of one or more promotion
cards 78 received from a bank 72 and to activate the one or more
promotion cards 78 through an electronic or communications network 104,
as understood by those skilled in the art. The retailer 64 also has a
point-of-sale (POS) 102 terminal or interface including an acquiring
processor 103, as understood by those skilled in the art. In addition,
the system includes a bank 72 having a second computer, defining a bank
computer 80, to manage an account 73 at the bank associated with the one
or more promotion cards 78. The bank computer includes a program product
in the form of instructions stored in memory and executable by the bank
computer as illustrated in FIG. 7 and discussed below. The system further
includes an open payment network 70 to receive authorization requests
captured by an acquiring processor 103 for a purchase by a consumer 62
using one or more promotion cards 78 as payment, route the request to the
bank computer 80, receive an authorization response from the bank
computer 80, transfer funds to the retailer 64 from the open payment
network 70 in response to an authorized consumer purchase using the
promotion card 78 as payment, and collect funds from the account 73 at
the bank associated with the one or more promotion cards 78 to satisfy
the authorized consumer purchase using the promotion card as payment.

[0042] Embodiments of the present invention also include a computer
program product, as illustrated in FIG. 7, stored on a tangible computer
memory media 82, operable on a computer 80 associated with a bank, and
used to manage promotion card transactions, The computer program product,
for example, includes a set of instructions 84 that, when executed by the
computer, cause the computer to perform the various operations, including
processing activation information of one or more promotion cards from the
retailer computer (block 86). The operations also include authorizing
purchase requests for the use of one or more activated promotion cards as
payment for a consumer purchase from the retailer via an open payment
network (block 88), as understood by those skilled in the art, and
transferring funds to and through the open payment network from the
account at the bank associated with the one or more promotion cards to
satisfy the authorized consumer purchase using the promotion card as
payment (block 90), In addition, the operations further include receiving
funds into an account at the bank associated with the promotion cards on
behalf of the retailer for one or more of the following: payment for the
one or more activated promotion cards, payment for consumer purchases
using one or more promotion cards, and payment for the value remaining on
the one or more promotion cards upon expiration (block 92). The
operations, for example, also can include debiting the account at the
bank associated with the one or more promotion cards of the remaining
value for the one or more expired promotion cards to thereby sweep the
account and establish a credit for the bank (block 94).

[0043] Embodiments of the present invention also include a computer
program product, as illustrated in FIG. 9, stored on a tangible computer
memory media 82, operable on a computer 80 associated with a bank, and
used to manage promotion card transactions. The computer program product,
for example, includes a set of instructions 84 that, when executed by the
computer, cause the computer to perform the various operations, including
processing activation information of one or more promotion cards (block
110). The operations also include receiving funds into an account at the
bank associated with the promotion cards on behalf of the retailer for
payment for the one or more activated promotion cards (block 111). The
operations further include authorizing purchase requests for the use of
one or more activated promotion cards as payment for a consumer purchase
from the retailer via an open payment network (block 112), as understood
by those skilled in the art, and transferring funds to the open payment
network from the account at the bank associated with the one or more
promotion cards to satisfy the authorized consumer purchase using the
promotion card as payment (block 113). In addition, the operations, for
example, can include debiting the account at the bank associated with the
one or more promotion cards of the remaining value for the one or more
expired promotion cards to thereby sweep the account and establish a
credit for the bank (block 114).

[0044] A person having ordinary skill in the art will recognize that
various types of memory are readable by a computer such as described
herein, e.g., retailer computer, bank computer, or other computers with
embodiments of the present invention. Examples of computer readable media
include but are not limited to: nonvolatile, hard-coded type media such
as read only memories (ROMs), CD-ROMs, and DVD-ROMs, or erasable,
electrically programmable read only memories (EEPROMs), recordable type
media such as floppy disks, hard disk drives, CD-R/RWs, DVD-RAMs,
DVD-R/RWs, DVD+R/RWs, flash drives, memory sticks, and other newer types
of memories, and transmission type media such as digital and analog
communication links. For example, such media can include operating
instructions, as well as instructions related to the system and the
method steps described above and can operate on a computer or a server.
It will be understood by those skilled in the art that such media can be
at other locations instead of or in addition to the bank computer or
server to store program products, e.g., including software, thereon. Each
of these computer servers, for example, can having one or more of these
various types of memory as understood by those skilled in the art. In
addition, the present invention is not described with reference to any
particular programming language. It will be understood that a variety of
programming languages may be used to implement the systems, program
products, software, and computer-implemented methods as described herein.

[0046] Many modifications and other embodiments of the invention will come
to the mind of those skilled in the art having the benefit of the
teachings presented in the foregoing descriptions and the associated
drawings. Therefore, it is to be understood that the invention is not to
be limited to the illustrated embodiments disclosed, and that
modifications and other embodiments are intended to be included within
the scope of the appended claims.